Freight Options

If the freight option is accepted for clearing by a clearing organization, the terms and conditions of the freight option incorporate by reference such terms and conditions established by the relevant clearing organization in its rules or bylaws. If the freight option is not submitted for clearing to a clearing organization, the terms and conditions of the freight option incorporate by reference such credit and other terms as the parties may establish through their pre-existing bilateral agreement. The freight option has the following characteristics:

Contract Overview:	A freight option contract represents an option to assume a short or long position in the underlying freight swap at the strike price.
Underlying Reference Routes:	Dry Timecharter Basket Routes CTO (Capesize TC Avg 4) PTO (Panamax TC Avg 4) STO (Supramax TC Avg 6) HTO (Handysize (TC Avg 6)
Trade Date:	The date on which the parties enter into the options contract.
Option Style:	European Style: A European style option allows the holder to exercise only at the expiration date, i.e. a single pre-defined point in time. American Style: An American style option allows the owner to exercise the option at any time before the expiration date.
Option Premium:	The premium is paid at the time of purchase.
Currency:	USD
Strike Price:	The price at which an investor can exercise an option.
Expiration Date:	The date on which the option contract expires.
Expiration Time:	The time at which the option contract expires.
Settlement Date:	The date on which the option settles.
Settlement Type:	[Cash settlement] [Physical settlement]